Infosys, India’s second-largest IT services exporter, has hit the sweet spot of bagging deals in the $100-500-million range from its traditional offerings like application development, testing, infrastructure and BPO in a much more integrated manner.
The $7-billion IT company that derives around 64% of its revenue from traditional software services segment has found better traction for large deals by delivering these offerings in a combined fashion.
In the past, the demand was specific to a particular service be it application development and maintenance (ADM), testing or infrastructure, but now they are much more comfortable in giving contracts that will combine all these services in what is called as integrated sourcing deals.
Chandrashekar Kakal, senior vice-president and global head ? business IT services, Infosys, said that in the last six months they have won more number of integrated sourcing deals in the range of $100-500 million. ?Such integrated deals are definitely making more rounds these days. It is typically of five to seven years,? he added.
Some of the examples of large deals won by Infosys that fall under the category of integrated sourcing contracts, include the likes of Procter & Gamble, Harley-Davidson, Brit Insurance.
In the case of Brit Insurance, Infosys was handed over the entire application management and BPO work in a seven-year deal. In a contract with Harley-Davidson, the company took over 1,400 applications and data centre operations.
Kakal said they were undertaking much more complex outsourcing work with an end-to-end responsibility.
?Today clients look at the capability we have developed and are comfortable in handing out entire stack with deals of longer tenure,? he said.
The response by Infosys for these integrated sourcing deals has more to do with changing requirements of the IT sourcing market. In an environment where the economies of US and Europe are not in that great shape, the demand from the marketplace is ?more for less? and integrated deals is one of the way forward.
